News and Insights

Revenu Québec Issues Road Vehicles Publication

Tax Development Jun 29, 2018

Revenu Québec has issued publication IN-624V, “The QST, the GST/HST and Road Vehicles” to outline the application of GST and QST to road vehicle acquisitions in Québec.

Large businesses registered for QST may benefit from a trade-in rule through to December 31, 2020, where the vehicle traded-in was acquired prior to January 1, 2018 and was subject to the ITR restrictions (i.e., vehicle weighing less than 3,000 kg).  Under this rule, the purchase price value subject to QST may be reduced by the trade-in value of a previously restricted vehicle, assuming the trade-in vehicle was used exclusively (90% or more) in commercial activities.

The publication also provides examples of transactions including:

  • zero-rating provisions for road vehicles purchased solely for resale;
  • trade-ins of used road vehicles;
  • purchases of new and used vehicles;
  • purchases and leasing of road vehicles by Indian status individuals; and
  • other special situations.